Stock Market Highlights: Indian equity indices, Sensex and Nifty recovered from the day's losses to end flat Friday. Broader markets underperformed the benchmarks as the midcap and smallcap indices closed lower. Among sectors, Nifty FMCG, Nifty Private Bank and Nifty Financial Services gained, while PSU Bank, metals, auto and IT indices ended in the red.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty halted a four-week winning streak as it ended the week 0.73% lower. Panic selling has been absorbed well so far in the markets and local investors have taken these sell-offs as an opportunity to add to their positions. The absence of a sharp selloff in global markets is helping keep sentiments steady here. Follow-through buying however may be selective and index gains from hereon may be relatively slow. On the upside, the Nifty could face resistance at 15,750 while 15,430 could provide support on down moves.
Ajit Mishra, VP - Research, Religare Broking
Markets remained volatile for the third successive session but settled almost unchanged, taking a breather after the recent fall. With no major event, global cues will continue to dictate the market trend. On the domestic front, the progress of the monsoon and updates on the vaccination drive will be closely watched. Indications are in the favor of further consolidation in the index but the bias would remain on the positive side till Nifty holds above 15,400. Meanwhile, participants should maintain their focus on the selection of stocks and use dips to gradually accumulate the fundamentally sound counters.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of the Nifty is very volatile. The short term downward correction seems to have completed and the Friday’s low of 15,450 could be important support as of now. This swing low is expected to be a new higher bottom formation of a larger degree, post confirmation. Hence, Nifty sustaining above 15,700 levels by next week is likely to open a way for another new all-time highs-above 15,901.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the Nifty index has formed a Hammer candlestick pattern in the recent trade on the daily chart, which indicates a further upward move in the counter. Moreover, the index has also tested good support at its prior level of 15,431, which suggests immediate support for the near term. In addition, on an hourly chart, the index has turned upward from the oversold zones, which point out positive moves for the upcoming session. At present, Nifty has immediate support at 15,430 levels, whereas 15,900 may act as a resistance zone.
Nirali Shah, Head of Equity Research, Samco Securities
After four weeks of consecutive green candle, the Nifty 50 index closed negative for the week. The benchmark index was rising on slow momentum and formed a rising wedge bearish pattern which has eventually broken down. As the market is still over-bought in the short term, Nifty index in expected to test 15,200 levels in the short term. There might not be a major decline immediately but profit booking cannot be ruled out. Immediate support and resistance are now placed at 15,350 and 15,900 levels.
Markets are expected to witness some profit booking to a broad range-bound correction as news toggle between vaccinations and the new delta variant causing the third wave. Any form of credit incentive to supplement health care infrastructure would be good news for equities.
Mohit Nigam, Head, PMS - Hem Securities
It is a buy-on-dips kind of market so at the lower levels buying was seen that gave support to the market. Expect positive for real estate stocks as Mumbai's Mayor Kishori Pednekar today said that there will be no hike in Property tax in Mumbai till the Covid-19 situation continues. Immediate support and resistance are intact at 15,600 and 15,850 for Nifty50.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
With global risk sentiment deteriorating, further selling in the short-term cannot be ruled out as markets price in the Fed's surprising shift in policy stance. Nifty briefly broke the 20-day moving average of 15,596 today but has recovered off lows. The index has not closed below the 20-DMA for well over a month. Hence, this is the immediate support to watch out for. Closing below the 20-DMA could lead to a short-term correction towards 15,200-15,100 in the days ahead.
Manish Shah, Founder, www.Niftytriggers.com
Nifty experienced a volatile week. The highlight of the week was a sharp reversal in the closing hours of the day as Nifty bounced off the low of the day and the week at 15,450. The zone at 15,450 was important as it was the 38.2 percent retracement of April 22 low of 14,151 to the recent high at 15,901. Secondly, the low at 15,450 was also near to the previous swing high. On the weekly time frame, the underlying trend remains intact. The trigger for entry on the upside would be on a break above 15,775-15,800 and once this happens Nifty could see a rally to 15,900 and above that to 16,200. As long as Nifty holds above 15,400 a higher move remains a possibility.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The USDINR spot is at an inflection point, though optimism over Fed rate hikes is keeping the USDINR afloat, the price activity suggests that revaluation of positioning is currently taking place. Today’s weekly closing will be important for more clear direction for USDINR in the coming days. Sustenance above 74.25 will open doors for 74.50-74.65. If it gives weekly closing near or below 74.0 today then we can see the pair to witness a dip towards 73.90-73.65 and consistent trading below 73.65 will lead the pair towards 73.50/73.45.
Rupee At Close | Indian rupee erased intraday losses to end 22 paise higher at 73.86 per dollar. The local currency opened flat at 74.10 per dollar against the previous close of 74.08 and traded in the range of 73.82-74.27.
Market This Week | Sensex, Nifty & Midcap index snap 4-week gaining streak. Nifty falls 0.7% & Sensex 0.2% this week; Midcap index down 3%.
Market At Close | Market breadth favours declines with advance-decline ratio at 2:5
Market At Close | Market closes near flatline after a sharp recovery.
Dipan Mehta Director, Elixir Equities
This correction in the market will further gather steam over the next few trading sessions. You should expect a 5-7 percent type of correction from the Nifty’s peak of around 15,900. This is a great opportunity for retail investors, institutional investors or HNIs to start deploying cash. I think the next few trading sessions, a week, 10 days or so is a good opportunity to look at buying gradually into good quality stocks. Try rebalancing the portfolio; stocks you are underweight in, sectors you are underweight in, it is a good time to get into those sectors.
Market This Week | Here’s how market performed this week
- Sensex, Nifty & Midcap Index Snap 4-week Gaining Streak
- Nifty Bank Slips For 2nd Straight Week With The Index Falling Nearly 1%
- Nifty Falls 0.7% & Sensex 0.2% This Week; Midcap Index Down 3%
- Except FMCG & IT, All Sectoral Indices Close Lower For The Week
- 38 Nifty Stocks Give –ve Returns; Adani Ports, CIL, JSW, Tata Steel Top Losers
- HUL, HDFC Life, Infosys, Tata Cons Top Nifty Gainers This Week
Market At Close | Here are the highlights for today’s trading session
- Market Closes Near Flatline After A Sharp Recovery
- HUL, HDFC Bank, RIL & Infosys Lead Market Recvovery
- Sensex, Nifty & Nifty Bank Close Flat While Midcap Index 1% Lower
- Nifty Falls 8 Points To 15,683 & Sensex Closes 33 Pts Lower At 52,291
- Nifty Bank Slips 47 Points To 34,558 & Midcap Index 280 Pts To 26,496
- Adani Ports, HUL, Bajaj Auto, Bharti Airtel, Grasim & Cipla Top Nifty Gainers
- Metals Remain Under Pressure As Dollar Index Rises Further; Nifty Metal Down 1%
- Adani Ports & Adani Ent Snap Losing Streak With Both Gaining 7-9%
- Ashok Leyland Falls 4% After A Downgrade By Credit Suisse
- Adani Group Erases Market Cap Of More Than Rs 1.5 Lakh Cr This Week
- Market Breadth Favours Declines With Advance-Decline Ratio At 2:5
Closing Bell | Indian equity benchmark indices recovered from the day's losses to end flat Friday. The Sensex gained 21.12 points, or 0.04 percent to close at 52,344.45, while the Nifty ended 8.05 points, or 0.05 percent lower at 15,683.35. Broader markets underperformed the benchmarks as the Nifty Midcap100 and Nifty Smallcap100 indices closed 1.05 percent and 0.88 percent lower, respectively. Among sectors, Nifty Private Bank and Nifty Financial Services recovered from intra-day lows to end flat while Nifty FMCG ended higher. Selling was seen in PSU Banks, metal, IT, auto and pharma indices. On the Nifty50 index, Adani Ports & SEZ, Bajaj Auto, HUL, Bharti Airtel and Grasim Industries were the top gainers while ONGC, Coal India, JSW Steel, NTPC and UPL led the losses.
Domestic air passenger traffic falls 63% in May versus April
The aviation industry has taken a big hit because the COVID second wave and official data now released shows that passenger traffic dropped 63 percent in May compared to April. The domestic air passenger traffic for the month of May for India was at 21.15 lakh passengers. This is 63 percent lower than what it was in the month of April, with 57 lakh passengers. Air India saw the lowest PLF at 40.9 percent, followed by Vistara, AirAsia India. SpiceJet at 64 percent was the highest followed by GoAir. Read here.
Metal stocks continue to reel under pressure; Nifty Metal down 9% this week
Metal stocks continued to reel under pressure with the Nifty Metal index falling over 4 percent on Friday. Shares of Vedanta, JSPL, SAIL, JSW Steel, Tata Steel, Coal India and NALCO were down 3-5.5 percent today. The heavy sell-off in metal stocks was triggered by a decline in metal prices after China promised to release reserves to ease shortfall fears this week. The Nifty Metal index has fallen 9 percent this week. In comparison, the benchmark Nifty is down around 1.5 percent for the week. Among stocks, Adani Enterprises, JSPL, Vedanta, Coal India, SAIL, and JSW Steel fell 9-15 percent this week while Tata Steel, NALCO, MOIL, and Hindalco fell over 7 percent each. APL Apollo Tubes was the only Nifty Metal constituent in the green for the week. Read here.
Oil falls amid dollar strength; demand picture still bullish
Oil prices fell for a second straight session on Friday as the US dollar soared on the prospect of interest rate hikes in the United States, but they were on track to finish the week little changed and only slightly off multi-year highs. Brent crude futures were down 64 cents, or 0.9 percent, at $72.44 a barrel, extending a 1.8 percent decline on Thursday. The contract is set to be largely steady for the week. US West Texas Intermediate (WTI) crude futures were down 53 cents, or 0.8 percent, at $70.51 a barrel, after retreating 1.5 percent on Thursday and is also set to be flat on the week.
Enough room for domestic steel price hike, say analysts; exports rise
Domestic steel prices continue to remain at a sharp discount compared to international steel prices, indicating that there is room for a further price hike, analysts said. The global steel prices witnessed a significant rally in the second half of FY21, especially in the US and Europe. The HRC (hot-rolled coil) prices in the US have spiked to above $1,600 per tonne in May 2021 from the levels of around $550 per tonne in May 2020. “Domestic steel prices continue to remain at least at 15-20 percent discount to the international steel prices,” Analysts at Care Ratings said in a report. Read more here.
Eveready Industries Q4FY21 | The company reported a consolidated net loss of Rs 442.5 crore against a profit of Rs 63.1 crore, YoY. Consolidated revenue rose 21.7 percent to Rs 272.6 crore from Rs 224.1 crore, YoY. EBITDA increased 44.4 percent to Rs 41 crore from Rs 28.4 crore, while EBITDA margin was at 15 percent as against 12.7 percent, YoY.
Corporate earnings to stay on track; focus on small & midcap outperformance: Buoyant Cap's Jigar Mistry
It's a volatile market of late, but Jigar Mistry, co-founder of Buoyant Capital, on Friday said that he expects corporate profits expected to be strong like last few quarters. Speaking in an interview with CNBC-TV18, he said, “The corporate profitability going forward is not likely to be as strong as what we have seen over the past couple of quarters, which has been fantastic; Q4 (FY21) was the most blockbuster quarters for Nifty and BSE 100 companies that we have witnessed.” The midcap and smallcap outperformance has been the talk of the Dalal Street watchers. “The small and midcap outperformance vis-à-vis the larger indices was already at a level which has not been seen in the last 10 years or so. 2008 was better but since then this is the largest year of one year outperformance by them,” said Mistry. Read here.
Market Watch: Hemen Kapadia, KRChoksey Securities
- Buy Adani Ports with a stop loss of Rs 620 and a target of Rs 770
- Buy Hindustan Unilever (HUL) with a stop loss of Rs 2,420 and a target of Rs 2,510
- Buy CONCOR with a stop loss of Rs 670 and a target of Rs 715
KIMS IPO subscribed 1.14 times on final day; retail portion booked 2.44 times
The initial public offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) was subscribed 1.14 times till now on June 18, the final day of bidding. Investors have put in bids for over 1.64 crore equity shares against the offered size of 1.44 crore shares. The issue with a price band of Rs 815-825 per share will close on Friday. As per the subscription data available on exchanges, the reserved portion for retail investors was subscribed the most, 2.44 times, while the portion for qualified institutional buyers (QIBs) was subscribed 1.16 times. Non-institutional investors submitted bids for 27 percent of their reserved portion, and the employees' part saw 87 percent subscription. The company has reserved shares worth Rs 20 crore for its employees. Read more.